Prevent money laundering under the guise of trade

Currently, a global economic crisis is ongoing, and its impact has been felt in Bangladesh as well. Despite this crisis, money laundering under the guise of trade by some large businessmen has become a significant problem in the country. In addition to the record levels of defaulted loans, tax evasion, inflation, and money laundering through informal channels (hundi) have increased. A large portion of these defaulted loans is being laundered abroad. The current economic crisis has been attributed to two underlying causes: the increase in defaulted loans and the outflow of money due to corruption. Additionally, a decline in remittances and export earnings has led to a dollar shortage. As a result, the country's economic condition is deteriorating. This has prompted the Prime Minister to repeatedly warn the nation.

The banking sector is a major pillar of trust for people. While there are some challenges, the situation has improved compared to the previous pressures. Although the dollar market hasn't fully stabilized, it is more normal than before. There haven't been any incidents of people being unable to withdraw their deposits; in fact, deposits have increased even during this period of high inflation. There is also growth in lending.

Previously, trade-based money laundering was not thoroughly scrutinized. Following the strict measures implemented by the Bangladesh Bank, it has become evident that large businessmen have laundered significant amounts of money under the guise of trade. In light of the Bangladesh Bank's directives, bankers are now monitoring these activities more effectively.

At one point, the withdrawal of money and the sale of dollars from some banks created liquidity pressure. As a result, the Bangladesh Bank, in its role as the regulatory authority, provided assistance. There have been no incidents where people were unable to withdraw their money or were denied loans. However, in the current situation, there may not be significant large investments, which is why loan growth is somewhat subdued.

The cost of production in the country has already increased. Under the pressure of inflation, people's incomes have decreased. However, they are unable to reduce their expenses in any way. As a result, the produced goods are not being sold as expected. This has led to a decrease in the cash flow for businesses. There is now a significant gap between income and expenses.

However, a particular segment of the population in the country evades taxes by undervaluing imported goods. Through this practice, they not only evade taxes but also launder money. Although the Governor of the Bangladesh Bank warned that strict measures would be taken against those involved in such activities, these measures have not yet been implemented.

The biggest challenge for the banking sector is defaulted loans. The crisis of defaulted loans cannot be resolved by any single bank or by the Bangladesh Bank alone. Legal reforms are necessary in this context. Therefore, the number of courts and judges must be increased, and they should receive proper training on financial matters. Additionally, strict policies need to be enforced against loan defaulters.

Each economic stimulus is deeply interconnected with others. Consequently, a segment of large businessmen is laundering money abroad under the guise of trade, which has led to an increase in defaulted loans in the country. Additionally, legitimate remittances from expatriates are also decreasing. Furthermore, there is an increasing demand for dollars in the open market, leading to a depletion of reserves. Therefore, effective and stringent measures against defaulted loans, corruption, and informal money transfer systems are urgently needed. Without implementing such measures promptly, there is a risk of severe economic crisis looming over the country.